Consider the graph shown. What would most likely be the cause of a shift from S1 to S2?
A. A tax on sellers
B. A tax on buyers
C. A subsidy for sellers
D. A subsidy for buyers
A. A tax on sellers
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Loophole mining refers to financial innovation designed to
A) hide transactions from the IRS. B) conceal transactions from the SEC. C) get around regulations. D) conceal transactions from the Treasury Department.
Assume a money multiplier of 4 and a government expenditure of $20 million. If the Treasury borrows $20 million from the banking system while the banks have excess reserves, the money supply will
A) rise by $5 million. B) rise by $20 million. C) rise by $80 million. D) not be affected.
Travel websites such as Travelocity tend to offer reservation services for multiple travel modes. This is because
A) the firms have contractual obligations to offer reservations for airlines and railroads, for example. B) the firms have statutory obligations to offer reservations for airlines and railroads, for example. C) once the firm has the reservation technology for airlines, there are economies of scale in offering the same service for railroads. D) once the firm has the reservation technology for airlines, there are economies of scope in offering the same service for railroads.
During the Great Depression of the 1930s, the aggregate demand curve intersected the aggregate supply curve on
a. the horizontal segment of the aggregate supply curve b. the upward-sloping segment of the aggregate supply curve c. the vertical segment of the aggregate supply curve d. both the horizontal and vertical segments e. both the upward-sloping and vertical segments